After the recent conclusion of the Goods and Services Tax (GST) Council Meeting, the new GST rate hike came into effect on the 18th of July.
The 47th GST Council meeting in June concluded, with the shortlisted household items which would now be expensive, stretching the budget of middle class people.
Pre packaged consumer goods and food items will begin to include an additional 5% GST. Recently, the Central Board of Indirect Taxes and Customs issued a directive raising the GST on pre packaged consumer goods weighing up to 25 kgs by 5%. With this, items like wheat, rice, buttermilk, lassi, curd, paneer, and other necessities of everyday life would be more expensive.
Justifying the GST rate hike, Ms. Nirmala Sitharaman, the Finance Minister of India, said any hike in the GST rate is meant to make up for value chain shortcomings. Things that cost more include packaged food items, hotel rooms and LED lights. In addition, the GST also decided to end the tax exemption for various unbranded items, which would now be under the tax regime. Unbranded food items ranging from cereals and pulses to curd, ‘lassi’ and puffed rice will now be taxed.
In addition, a GST of 18% on bank costs for issuing checks and a tax of 12% on hotel rooms that cost less than Rs. 1,000 per day, which is now free from taxation.
Furthermore, while the Bharatiya Janata Party (BJP) led Central Government tried to justify the hike, the opposition expressed anger about the GST rate increase.
Mr. Rahul Gandhi, the former President of the Indian National Congress and a Member of Parliament (MP) described the GST as ‘Gabbar Singh Tax’.
Meanwhile, the GST modifications and new rates came into effect on the 18th of July, Monday.
Mango News Link
Telegram: https://t.me/mangonewsofficial
Google Play Store: https://bit.ly/2R4cbgN
Apple / iOS Store: https://apple.co/2xEYFJ
